"With this round of funding, the total equity raised by Northern Arc stands at Rs 1,400 crore," a release said.

With this round of investment, the company's net worth has almost doubled, the city-based firm said.

As part of this transaction, investors Dvara Trust, LeapFrog Investments and Accion would sell their stake in the company.

Axis Capital, Credit Suisse and ICICI Securities acted as advisors to the transaction.

Affirma Capital is the newly formed private equity firm to be managed by team of Standard Chartered Private Equity.

"This is significant milestone for Northern Arc..the capital will allow us to significantly scale-up the existing business and pursue new opportunities," Northern Arc Capital, MD and CEO, Kshama Fernandes said.

"We will continue to invest in product development and technology, building on our konwledge, geographical reach, field insights and risk modelling," Fernandes said.

Commenting on the transaction, IIFL Asset Management Company CEO Prashasta Seth said, "Over the last decade, Northern Arc has created a strong platform,w hich enables access to debt capital for emerging sectors".

"With strong tailwind from these emerging sectors and Northern Arc's continued focus on execution, we believe the Company is poised for rapid growth," he said.

(Business Television India (BTVI) is now on WhatsApp. To subscribe to the service, click here)